APSE Energy - Members briefing 17/15 (October 2015)

The Heat Networks Delivery Unit (HNDU) has recently announced details of the opening of a fifth round of funding to support local authorities in developing heat network projects. You can access the application guidance for local authorities and information on previous rounds of funding at Heat networks delivery funding.

The HNDU Round 5 is open to those local authorities in England and Wales who are seeking funding to undertake feasibility studies. This means that quality heat mapping and energy master planning must be completed in order for heat network projects to be eligible for funding.

Other criteria will include:· Local authority capacity and commitment· How strongly the project links with DECC’s decarbonisation objectives· If the project is (or is likely to become) a credible prospect for delivery.

Local authorities should email This email address is being protected from spambots. You need JavaScript enabled to view it. for an application form. Completed application forms and any accompanying documents are to be sent to This email address is being protected from spambots. You need JavaScript enabled to view it. by the closing date, 1 November 2015.

2. Ofgem publishes a summary of responses to the discussion paper ‘Non-traditional business models: Supporting transformative change in the energy market’

Earlier this year Ofgem published a discussion paper asking for views on the transformative potential of non-traditional business models (NTBMs), and the challenges, risks and opportunities of their development and growth. APSE Energy submitted a response to the discussion paper on behalf of its members. Ofgem has now published the public responses to the discussion paper together with a summary of responses to the discussion paper which you can read at Non-traditional business models: Supporting transformative change in the energy market.

The summary paper states that: “Many of you told us that NTBMs have the potential to transform the energy system. They increase competitive pressure, unlock more value for consumers, drive improved consumer engagement, and enhance system resilience. Many of you said NTBMs can deliver desirable consumer outcomes. They can lower bills, reduce environmental impact, and improve services.Many of the issues you raised are common to other work going on in Ofgem, in particular in the areas of flexibility, grid connections and future retail regulation. “

Ofgem have identified two transformative themes, and two cross-cutting themes from the responses. The transformative themes are:

1. New models of flexibility in a changing energy system - You noted a number of challenges relating to the installation and use of generation, storage, and demand-side response. Ofgem is taking forward work on flexibility in a number of priority areas relating to these issues. Please see chapter 8 for more detail.

2. Local energy - Many NTBMs told Ofgem that the regulatory system should be reviewed so it can better accommodate local energy undertakings.

Following on from the consultation responses, Ofgem intend to set out a proposed course of action for the future, before the end of 2015.

3. Energy Research Partnership – Report on the Role of Cities in the UK Energy Agenda

The Energy Research Partnership (ERP) based at Imperial College London launched their report on the role of cities in the UK Energy Agenda at a seminar held at the Royal Geographical Society in London hosted by W S Atkins on 23 September.The final version of the ERP Cities Report executive summary has now been finalised and is attached for your reference and is also available on the following link: http://erpuk.org/project/cities/

APSE Energy has contributed to the research undertaken by the ERP and the report recognises the central role of local authorities in the transition to a low carbon energy system and makes some key recommendations to Government including:

· Westminster and devolved Governments should create Cities and Energy Units with responsibility for the co-ordination of UK cities energy activities. It should be populated by energy system professionals and Local Authority representatives and have strong links to the DCLG and BIS cities programme.· To recognise and clarify Local Authorities’ roles and responsibilities in the facilitation, co-ordination and effective development of the UK energy system with a view to identifying policy and regulatory enablers.· To consider targets and monitoring around energy system co-ordination for Local Authorities. This should be done in conjunction with new funding.· Defining the need for skills capacity to support Local Authorities to deliver efficient and effective decentralised energy solutions, in particular the technical, legal and commercial frameworks.

Attached to this briefing is an invitation to attend the Low Carbon England 2015: Meeting the Emissions Reduction Targets conference being held on Tuesday, 1 December 2015 at the National Motorcycle Museum in Birmingham. This unique conference will address England's current place in meeting the EU emissions reduction targets. The main focus of the conference is to discuss and identify how public & private sector organisations working together in a joined up collaborative fashion can act as a catalyst to help both towns and cities to continue to lead the way in the transition to developing a Sustainable Low Carbon Economy.

APSE Energy Members can benefit from FREE delegate places saving £999 delegate fee to attend www.low-carbonengland.co.uk If you wish to take advantage of this offer which we have negotiated on behalf of APSE Energy members, please contact Ron Pusey at This email address is being protected from spambots. You need JavaScript enabled to view it. and quote APSE

5. Local authority Green Energy tariffs can be much cheaper than the big six energy companies

A recent article on the Good With Money website shows that the average green tariff is £100 cheaper each year than the average big six standard tariff for a medium user, according to figures from USwitch ‘Plans With Green Energy’ compiled exclusively for Good-with-money.com. Peterborough Energy (a member of APSE Energy) and Southend Energy, at £839 are just £8 off the very best buy on the whole of the market for a medium user, which is GB Energy, at £831. These suppliers are local council-operated in partnership with Ovo. You can read more about this at It’s official: green energy tariffs can be MUCH cheaper than Big Six.